Regional Water System
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Authorization of Execution of the Water Transmission Facilities Contract with College Mound Special Utility District, Gastonia-Scurry Special Utility District, North Kaufman Water Supply Corporation, and Becker-Jiba Special Utility District (collectively as “Parties), current Customers of NTMWD.
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SUBJECT
recommendation
Authorize execution of new Water Transmission Facilities Contract with the four Parties who are current Customers of NTMWD.
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PURPOSE
This contract outlines the responsibility of the Parties and NTMWD for the Operation and Maintenance of a new pipeline once in operation. This effort provides additional capacity for the Parties and supports the NTMWD Regional Water System (RWS).
RECOMMENDATION
The Executive Director and NTMWD staff and Lloyd, Gosselink, Rochelle & Townsend, P. C., recommend the Board of Directors authorize execution of a new Water Transmission Facilities Contract with current Customers.
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Contracting Parties: |
College Mound Special Utility District, Gastonia-Scurry Special Utility District, North Kaufman Water Supply Corporation, and Becker-Jiba Special Utility District |
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Purpose: |
Water Transmission Facilities Contract |
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Committee: |
This will be an item on the October 22, 2025, Water Committee Agenda. |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
1.1 High Quality Services 3.2 Engaged Members, Customers and Stakeholders |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
PURPOSE
• This is an agreement outlining the responsibility of the parties and NTMWD for a new pipeline to include operations and maintenance once in operation.
• This new Pipeline provides additional capacity for the Parties and supports the NTMWD Regional Water System (RWS).
• Parties requested additional capacity in the South Transmission System, and this action benefits the Parties and NTMWD’s RWS.
COMPONENTS OF THE CONTRACT WITH PARTIES
• Parties individually entered into the Potable Water Supply Contracts with NTMWD.
• Parties requested NTMWD acquire, construct, operate, and maintain certain transmission facilities to serve the Project.
o Project Facilities approximately 37,000 linear feet (LF) of 42-inch pipeline from the Tawakoni 42-inch line to the Kaufman 20-inch line and any associated facilities.
o NTMWD selects and contracts with engineering services firm (or firms) for tasks that may include, but are not limited to, real estate, easement and right-of-way acquisition, project design and preparation of plans, specifications and bidding documents, as well as contract administration services.
o Design and construction of delivery point facilities are the responsibility of the Parties
• Greater Texoma Utility Authority (GTUA) funds the entirety of the Project and recovers the funds expended on the Project from the Parties through separate agreements.
o Allocation and distribution of proportionate (evenly for Parties) costs associated with the 30-year Bond issuance.
o GTUA provides funding for all costs associated with the Project.
o Construction contracts will be in GTUA’s name. NTMWD and the Parties will approve all construction contracts.
• When Project Facilities commence operation, the Parties will pay all operation and maintenance costs--25% each.
• During the life of the Bonds, GTUA maintains sole ownership of the pipeline until the Bonds are paid in full.
• GTUA transfers the ownership of the pipeline to NTMWD at no cost to NTMWD.
• Term extends until GTUA transfers ownership of the pipeline to NTMWD and becomes part of the Regional Water System.
Parties approved this Contract prior to the NTMWD October 23, 2025, Board Meeting.
FUNDING
Provided by College Mound Special Utility District, Gastonia-Scurry Special Utility District, North Kaufman Water Supply Corporation, and Becker-Jiba Special Utility District